Applications will be accepted for the California Competes Tax Credit program during its next funding period, which will be open from Jan. 2–23, 2017. This is the second application period for the program this fiscal year, offering $100 ... LAO offers strategies to address future UI insolvency Oct. 9, 2016

The Legislative Analyst’s Office (LAO) has released a series of online articles on the condition of California’s unemployment insurance (UI) trust fund. The articles offer both a historical analysis of the fund’s current condition ... 'Useful life' regulatory change rejected Feb. 26, 2016

California manufacturers may soon get some additional relief from sales tax on the purchase of equipment. The amendment to the partial sales and use tax exemption addresses problems with taxpayer eligibility and the “useful life” ... Governor Releases 2016-17 Budget Proposal Jan. 8, 2016

On January 7, 2016, Governor Brown released his proposed $170 billion ($122 General Fund) Fiscal Year 2016-17 Budget that kicks off the negotiation for California's spending plan in the coming year. This will play out over the next five months ... MFG tax exemption proposed amendments Oct. 23, 2015

The Board of Equalization (BOE) has noticed proposed amendments to the partial sales and use tax exemption on manufacturing and research-and-development equipment that was enacted in 2013. The amendments are intended to address an issue with ... Cal Competes opens for new fiscal year July 23, 2015

Sacramento, CA — California Manufacturers & Technology Association president Dorothy Rothrock made the following comment today on a legislative proposal (Senate Constitutional Amendment 5) to put a measure before the voters to ... The Tax Man Cometh May 8, 2015

The final 2014-15application period for the California Competes Tax Credit program is fast approaching and manufacturers are strongly encouraged to apply for the credit, which can help to expand and grow your businesses.
This is the last award ... FTB to hold CA Competes tax credit procedures meeting Jan. 23, 2015

The Franchise Tax Board (FTB) will convene an Interested Parties Meeting next month to discuss implementation of the new compliance review procedures for California Competes Tax Credit recipients. The meeting will take place Thursday, February 19, ... California secures waiver from a UI tax increase Nov. 21, 2014

California employers will avoid a sizeable increase in their federal unemployment insurance (UI) tax for the 2014 tax year. The US Department of Labor (USDOL) has approved the state’s request for a waiver of the “Benefit Cost Rate ... Parcel taxes to gain more oversight Oct. 30, 2014

Governor Jerry Brown signed several tax-related measures this year that will make changes to a number of tax and fee programs. Most of these modifications will take effect January 1, 2015.
One such reform supported by CMTA will increase ... Manufacturing sales tax exemption town hall Oct. 24, 2014

All manufacturers are invited to participate in a Board of Equalization Telephone Townhall to discuss California's new Manufacturing Equipment and Research & Development Sales Tax Exemption. All manufacturers are eligible. The Telephone ... Next round of "California Competes" opens soon Sept. 26, 2014

The Governor’s Office of Business and Economic Development (GO-Biz) has announced the availability of the next round of “California Competes” Tax Credits. This income tax credit is available to businesses that want to locate ... California seeks waiver of UI tax increase July 18, 2014

This week Board of Equalization member George Runner hosted, alongside CMTA, a "tele-townhall" to answer questions about how to take advantage of the manufacturing sales and use tax (SUT) exemption that passed last year and went into ... Manufacturing benefits noted in debate on aerospace incentives July 3, 2014

AB 2389(Steve Fox, D-Palmdale) would provide up to $420 million in job credits for aerospace employment related to the Advanced Strategic Aircraft Project to be funded by the Department of Defense. Passing 72 to 2 out of the State Assembly last ... 2014 best & worst states for business May 23, 2014

The CEO Magazine ICYMI has released the 10th annual survey ranking the nation’s best and worst states for business. 500 CEOs across the U.S. responded to questions about tax, regulation, quality of workforce, and living environment.
At the ... Bad property tax bill gets fixed? May 15, 2014

Under current protections of Proposition 13 passed in 1978, a property re-assessment for tax purposes does not occur until there has been a “change in ownership” (COO) of the property through a single sale of an interest in property ... Aerospace manufacturing benefit passes committee May 15, 2014

California has a decades-long history in the forefront of aerospace development and manufacturing. The benefits to the state in high-wage jobs and supply chain multiplier effects are massive. Now we have the opportunity to attract important ... Senate "split roll" bill moves to the assembly May 9, 2014

This week SB 1021 (Lois Wolk, D-Davis) passed the Senate with 21 votes over the objections of business and taxpayer interests. The bill allows school districts to impose unlimited tax increases on property owners through non-uniform parcel taxes. ... Tele-Townhall on manufacturing related taxes May 9, 2014

Mark your calendar for an upcoming event that may be of interest to you.
On Tuesday, July 1, 2014, from 10:00 to 11:00 a.m., Board of Equalization Member George Runner will host a telephone townhall for manufacturers. The event, co-hosted by CMTA, ... Brown pushes plan for reserve fund May 1, 2014

Governor Brown called a special session to consider a plan to strengthen California’s finances by seizing spikes in revenue to be saved or used to prevent budget cuts during downturns or pay down state debts. While California voters voted to ... Manufacturing sales & use tax exemption regs clear first hurdle April 24, 2014

The Board of Equalization (BOE) Tax Committee has approved for publication the partial sales and use tax (SUT) exemption regulation for purchases of manufacturing and research & development equipment. The final draft of Proposed Regulation ... No Fooling - CEO pay would determine corporate tax rates April 11, 2014

On April 1, SB 1372 (Mark DeSaulnier, D-Concord) was amended to link corporate tax rates to the level of wage disparity between the CEO and the company workers. It would also impose a penalty on corporations that shift employees to foreign ... Applications for "California Competes" due soon April 4, 2014

Applications for the California Competes Tax Credit will be accepted through Monday, April 14. Interested businesses can obtain more information and apply online at this web address: http://www.business.ca.gov/Programs/CaliforniaCompetes.aspx. All ... Possible relief of timeliness penalties March 28, 2014

Two identical bills would provide some tardy taxpayers a relief from timeliness penalties in a similar manner now provided at the federal level. AB 2065 (Jeff Gorell, R-Camarillo) and AB 1777 (Sharon Quirk-Silva, D-Fullerton) allow such relief if ... GO-Biz workshops on 'California Competes' tax credit March 13, 2014

The California Board of Equalization (BOE) has released its final discussion paper on the proposed regulation for the partial sales and use tax exemption for manufacturing and R&D equipment purchases. It can be found here: ... Questions raised about declining corporate tax revenues Jan. 30, 2014

CMTA submitted comments to the Board of Equalization (BOE) this week on the revised draft regulation implementing the sales and use tax exemption for manufacturing and research & development equipment purchases. Our comments recommend ... CMTA opposes increase in federal UI taxes Dec. 13, 2013

CMTA joined with several other state and national business organizations urging Congress to reject any budget resolution or end-of-year legislation that proposes an increase in the federal unemployment insurance (UI) tax, also known as ... GO-Biz workshops on CA Competes Tax Credit Dec. 6, 2013

Last July, the Governor’s package for economic development was passed during budget negotiations that established not only the sales tax exemption for manufacturing equipment and a hiring credit, but also the “California Competes Tax ... GO-Biz workshops on CA Competes Tax Credit Dec. 4, 2013

Last July, the Governor’s package for economic development was passed during budget negotiations that established not only the sales tax exemption for manufacturing equipment and a hiring credit, but also the “California Competes Tax ... Second draft of sales tax exemption regulations released Nov. 25, 2013

The second discussion paper on the proposed sales and use tax exemption (STE) regulation has been released by the California Board of Equalization (BOE). The analysis and other general information can be found here ... Federal UI tax increases for 2013 Nov. 22, 2013

California employers will experience an increase in their federal unemployment insurance tax (FUTA) next year. This tax has been increasing since 2012 due to California’s outstanding UI debt to the federal government. Generally employers ... LAO says state fiscal outlook looks "promising" Nov. 22, 2013

The 10th Edition of the 2014 State Business Tax Climate Index has ranked California 48 out of 50 states for its complex, non-neutral taxes accompanied by high rates. The tax climate publication collects data on the 50 states’ tax provisions ... Sales Tax Exemption proposed regulations released Oct. 3, 2013

For years, the State Legislature has grappled with the notion of whether to impose a sales tax on services purchased in California. The sales and use tax is the state’s second largest revenue source and a major funding source for local ... Gov signs economic development initiative July 13, 2013

Sacramento, CA -- Today, California's Legislature and the Governor signaled to manufacturers that the state will be a more competitive place to invest over the next eight years by passing an eight-year 4.19 cent sales tax exemption on the ... Ruling stands in Alameda County parcel tax lawsuit June 27, 2013

Governor Jerry Brown introduced a business incentives package in the “May Revise” that would essentially eliminate the Enterprise Zone Program as we know it today. According to the Administration, this new proposal seeks to ... Governor's "May Revise" details May 16, 2013

While revenues have continued on an upward trend in the last few months to the tune of $4.5 billion ahead of expectations, Governor Brown’s May Revise budget proposal released this week takes a modest approach to the trend basing the plan on ... Speaker releases Democrats budget blueprint May 16, 2013

In anticipation of the release of Governor Brown’s May Budget Revise, last week Assembly Speaker John Perez (D-Los Angeles) revealed what he called the Blueprint for a Responsible Budget on behalf of the Assembly Democrats. The plan ... Turning tides ... April 18, 2013

Recent announcements regarding two controversial issues provide some direction to California businesses as to the Legislature’s economic policy priorities for the current legislative year:Proposition 13According to recent reports, Senate ... 10-year sunset proposed on tax credits April 12, 2013

A bill to impose a 10-year sunset on all income and franchise tax credits proposed in legislation on or after January 1, 2014, passed the Senate Governance and Finance Committee this week. SB 365 (Lois Wolk, D-San Francisco) puts the long-term ... Measures seek lower vote threshold to pass taxes Feb. 8, 2013

Several measures have been introduced this year seeking constitutional changes to how local governments pass and levy special taxes for services and projects. For the most part, the handful of constitutional amendments all seek the same goal: ... Unemployment insurance rate increase expected Jan. 31, 2013

Earlier this week, Labor and Workforce Development Secretary Marty Morgenstern called a meeting of Sacramento business associations to begin a dialogue on increasing unemployment insurance (UI) rates for California employers. Because of ... Court rules budget spot bills unconstitutional Jan. 31, 2013

A recent appellate court decision has declared legislative budgetary actions taken by the Legislature last session tied to placeholder bills (aka “spot bills") altering the order of ballot measures to be unconstitutional. The decision ... Enterprise zone reforms on the horizon Jan. 18, 2013

This year promises to be a challenging one for the Enterprise Zone (EZ) program. Both the Administration and the Legislature are proposing sweeping reforms to change and possibly eliminate the program.
Last week, the Department of Housing and ... Controller releases November cash update Dec. 13, 2012

On December 7th, State Controller John Chiang released his monthly report covering California's cash balance, receipts and disbursements. For November 2012 total revenues were $806.8 million below (-10.8 percent) projections contained in the ... Legislation to implement prop 39 introduced Dec. 7, 2012

The Court of Appeal in the case of "Gillette v. FTB" reissued its July 27 decision that found multistate corporations must be offered the opportunity to use the equal-weighted, three factor income apportionment formula so long as ... Online retailers begin CA sales tax collection Sept. 14, 2012

Beginning September 15, a new state law mandating online retailers to collect sales tax from California consumers will become effective. Governor Jerry Brown signed a bill last year requiring online retailers to collect sales tax on California ... CMTA Opposes Proposition 39 Aug. 10, 2012

CMTA opposes Prop 39 because it would raise taxes on California employers, hurting jobs and investment.Proponents would have us believe that a lack of a Mandatory Single Sales Factor (MSSF) is a reason jobs and investment are not coming to ... New bill would link state contracts with tax filing formula Aug. 3, 2012

The Sacramento Bee has alerted its readers that California Senator Kevin de Leon (D-Los Angeles) plans to introduce amendments to SB 911 that would prohibit state contracts with multi-state companies that pay state income taxes based on a ... Appeals Court sides with multistate businesses on taxes July 27, 2012

Multistate corporations achieved a significant win this week with the 1st District Court of Appeals unanimously ruling that California must honor a long-standing multistate compact that apportioned corporate taxable income on the basis for three ... LAO releases Initiative evaluations July 27, 2012

Unable to overcome Labor’s objections that the program is a bad return on the State’s investment, a bill that would have allowed tax benefits to continue in the two expired enterprise zones failed passage in the Senate Governance and ... Penalty for claiming tax refund June 1, 2012

The Governor’s "May Revise" budget proposal would impose a 20 percent penalty for any excessive amounts in a claim for a tax refund that lacked a reasonable basis. He estimates it would generate $1 million in general fund revenue in ... Tax disclosure for publicly traded corps on floor June 1, 2012

AB 2439 (Mike Eng, D-Monterey Park) passed off the Assembly floor today. The bill requires corporate disclosure of income tax payments. CMTA is opposed.
The author intends to gather information on changes to state revenue resulting from the 2011 use ... Brown releases 'May Revise' budget proposal May 18, 2012

Governor Jerry Brown released his “May Revise” budget proposal this week revealing his state budget deficit estimate to have dramatically increased to $15.7 billion – a $6.5 billion jump from his initial deficit estimate last ... LAO releases first 'May Revise' evaluation May 18, 2012

SB 1420 (Lou Correa, D-Santa Ana) authorizes the Board of Equalization (BOE) to relieve all or a portion of interest imposed, not to exceed $50,000 during a 12-month period, if it is determined that the taxpayer's failure to make a timely payment ... CMTA testifies to preserve elective tax formula for employers May 11, 2012

On Monday, in the Senate Revenue and Taxation Committee, CMTA's Dorothy Rothrock testified to preserve a critical tax liability election afforded to all California employers. Rothrock was opposing Speaker John Perez' AB 1500, a bill which will ... Add another $3 billion to the budget deficit May 4, 2012

Governor Jerry Brown will issue an updated budget for the 2012-2013 fiscal year on May 14th. Known as the “May Revise”, his budget problem is bigger than anticipated when his first budget was issued in January. At that time his estimate ... Bills to tax services stalled April 27, 2012

Two bills proposing a sales tax on services, AB 2540 (Mike Gatto, D-Burbank) and AB 1963 (Alyson Huber, D-El Dorado Hills), were amended yesterday and no longer impose a sales tax on services. CMTA opposed the bills because they would have created a ... CMTA opposes mandatory single sales factor April 20, 2012

CMTA is a member of California Employers Against Higher Taxes, a coalition of companies that employ thousands of middle-class Californians in good-paying jobs. The coalition launched a website about the job-threatening consequences of a proposed $1 ... Brown: Budget deficit higher than projections April 20, 2012

In a recent radio interview, Governor Jerry Brown acknowledged that his initial budget deficit estimate of $9.2 billion may no longer be accurate and that it is most likely higher.
During the interview, the Governor touted his compromise ballot ... State has 6th highest business taxes in nation April 20, 2012

The Small Business & Entrepreneurship Council recently released its 2012 Business Tax Index report ranking and detailing states the Council has found to be the best and worst for business in the country. To determine the ranking, the ... Runner proposes suspension of gas excise tax April 6, 2012

Board of Equalization Member George Runner has proposed a plan suspending the State gasoline tax once gas pump prices reach $4 per gallon. Runner claims that his plan would save taxpayers an estimated $1.4 billion should gas pump prices reach ... CMTA members participate in hearing on 'Advanced manufacturing' March 23, 2012

On Wednesday, Senators Alex Padilla and Lois Wolk held an informational hearing to understand the definitions and roles of "Advanced manufacturing."
The hearing was set up to inform Sen. Padilla's proposed SB 1128, a bill to provide ... Lowering support for Gov's tax plan March 9, 2012

In its lowest public poll reading so far, Governor Jerry Brown's tax plan has support from 52 percent of likely voters, according to a new Public Policy Institute (PPIC) survey. PPIC found in two earlier polls that Brown's plan to hike taxes ... Don't miss out on the Small Business Health Care Tax Credit March 9, 2012

As the March 15 corporate tax filing deadline approaches, we want to help ensure our small business members are aware they can reduce their federal tax burden if they provide health insurance to their employees.
The Small Business Health Care Tax ... Brown's tax measure in jeopardy Feb. 24, 2012

Survey results from a recent poll conducted by supporters of Governor Jerry Brown’s 2012 tax initiative indicated that if all three major tax measures qualify for the November ballot, Brown’s measure could be in serious jeopardy. ... Mandatory single sales factor bill introduced Feb. 24, 2012

Assembly Speaker John Pérez (D-Los Angeles) has introduced AB 1500 to help pay college tuition for middle class students through increased taxes by requiring most corporate tax filers to use the Single Sales Apportionment Factor (SSF) to ... Proposition 29, cigarette tax Feb. 17, 2012

While many eyes are already focused on the myriad of tax raising initiatives expected to be on the November General Election ballot, Lance Armstrong and his LIVESTRONG Foundation have focused attention on the upcoming June primary election, where a ... Controller urges legislative action on budget shortfall Feb. 10, 2012

In a letter to legislative budget leaders last week, Democratic State Controller John Chiang urged lawmakers to act quickly before California runs out of cash in March.
According to Chiang, the cash shortfall is due to $2.6 billion in State ... PPIC poll a mixed bag for Gov's budget proposals Feb. 3, 2012

California voters like Governor Jerry Brown’s idea of making high earners pay more taxes, but otherwise are of mixed minds about solving the State's chronic budget woes, according to the Public Policy Institute of California's latest poll on ... California's business tax climate - 3rd worst in nation Feb. 3, 2012

On December 29th, the California State Supreme Court decided to uphold the 2011 budget law that dissolved the states redevelopment agencies and voided a separate 2011 budget measure that created a substitute program.
The court established strict ... Governor issues budget executive order Dec. 16, 2011

Last week, Governor Jerry Brown issued an Executive Order (EO) that requires the Department of Finance (DOF) to incorporate new common sense program-evaluation methods in to the state’s budgeting process. In the EO, Brown directs DOF to ... Oil tax measure cleared Dec. 16, 2011

A constitutional amendment creating a new State Bank funded by a 15 percent minimum tax on all oil and gas extracted from California has been cleared for circulation. If passed, the State Bank would be authorized to refinance the state debt and make ... More ballot initiatives for the 2012 election Dec. 2, 2011

Three more initiatives regarding business taxes are being circulated for next year’s general election: single sales factor, a tax overhaul, and budget governance reform.
An environmental coalition led by hedge-fund manager Tom Steyer has filed ... State’s outlook likely to 'trigger' cuts Nov. 18, 2011

In the last week, three key state fiscal entities have released financial outlook reports detailing the state’s current revenue situation and providing projections for the upcoming budget year.
Democratic Controller John Chiang’s report ... BOE talks split roll, again Nov. 4, 2011

With the state legislature out of town and the Governor’s bill signing finished, all eyes are about to shift towards the state’s fiscal condition once again. State officials are awaiting the quarterly tax collection figures which are ... California's debt weighs heavy on state finances Oct. 14, 2011

In a new report, Treasurer Bill Lockyer estimates that California will devote 7.8 percent of its budget to paying off debt this fiscal year, more than twice the share in 2003-04. Eight years ago, the state devoted 3.4 percent of its general ... Southern California cities file redevelopment lawsuit Oct. 7, 2011

Ten Southern California cities and their redevelopment agencies have filed a lawsuit challenging methods used by state lawmakers in the budget process. More specifically, the suit alleges that California’s new plan to take $1.7 billion ... 'Amazon tax' compromise signed by Governor Sept. 30, 2011

Amazon.com has added another $2.25 million to its effort to overturn a law (ABx1 28, Bob Blumenfield, D-Van Nuys) requiring some online retailers to collect sales tax on purchases made by Californians, bringing the company's total investment in the ... Governor unveils "California Jobs First Plan" Aug. 26, 2011

On Thursday, Governor Jerry Brown offered up a revised tax plan designed to promote job growth, proposing to eliminate the election of corporate tax calculations, while offering new incentives for businesses to grow and hire in California. Under the ... Enterprise zone reform bill stalled in Assembly committee Aug. 26, 2011

On Tuesday, the Assembly Jobs, Economic Development and the Economy Committee failed passage of legislation that would have altered the way the state’s enterprise zone (EZ) program’s hiring credit would be applied to companies that moved ... State revenue is weaker than expected Aug. 19, 2011

California's chronic fiscal problems don’t appear to be over just yet, as recent revenue reports show significantly weaker than expected revenue even before the stock market, a key source of revenue for the state, began sliding in response to ... LA Mayor calls for Prop 13 reform Aug. 19, 2011

Earlier this week, Los Angeles Mayor Antonio Villaraigosa called on Governor Jerry Brown to “be bold” and push for major, controversial changes to the fundamental structure of Proposition 13. According to Villaraigosa, current ... Election 2012: Repeal of some budget trailer bills? Aug. 12, 2011

The Secretary of State has given opponents of two bills that were approved as part of this year's budget package the okay to begin collecting voter signatures to qualify their repeals for the 2012 ballot.
One referendum, filed by Senator Ted Gaines ... BOE moves forward with regulations for “Amazon Tax” Aug. 5, 2011

The California State Board of Equalization (BOE) last week voted to start the process for implementing the state’s new “Amazon tax” law. The new law requires many out-of-state retailers, including online retailer Amazon, to start ... Steinberg postpones local taxation measure July 27, 2011

Senate President Pro Tem Darrell Steinberg, D-Sacramento, recently announced his decision to temporarily postpone his pursuit of a local taxation measure he used earlier this year as a budget bargaining chip. The measure, originally SB 653 ... RDAs & cities take case to California Supreme Court July 21, 2011

The California Redevelopment Association along with the League of California Cities, the city of San Jose and Union City filed a lawsuit asking the California Supreme Court to issue a stay order by August 15th blocking the implementation of ... SSF bill amended with additional business incentives July 15, 2011

On July 1st, California’s sales tax dropped from 8.25 percent to 7.25 percent as legislation from 2009 expired. Betty Yee (D), a member of the state’s Board of Equalization, said the drop also affects California’s “use ... 2009 VLF increase expires July 8, 2011

The beginning of Fiscal Year 2011-2012 on July 1st also marked the sunset of the 2009 vehicle license fee tax increase. The vehicle license fee has now dropped to 0.65% from 1.15%. Governor Jerry Brown heavily lobbied for the extension of this ... Majority-vote budget clears California State Legislature July 1, 2011

On Tuesday, June 28th, California lawmakers passed a budget and the Governor signed it on Thursday, June 30th. It wagers that the state’s recovering economy will bring in an extra $4 billion.
The $85.9 billion spending package, approved ... “Trigger list” cuts contingent on state revenues in 2012 July 1, 2011

One of the key components of the majority vote budget passed Tuesday night, June 28th, is a $4 billion assumption of higher revenues in 2011-12, backed by $2.5 billion in "trigger" cuts in case only some or none of that money ... Governor signs eight budget trailer bills – More on the way July 1, 2011

Governor Jerry Brown signed eight budget-related bills Wednesday, June 29th, including controversial measures to abolish state redevelopment agencies in their existing form and to require online retailers such as Amazon.com to collect sales tax on ... Opponents to local taxing authority bill get serious June 24, 2011

Opponents of a controversial bill to give local governments more power to seek tax increases have preemptively launched a campaign to repeal the measure should it become law. A business-backed coalition called Stop Hidden Taxes has opened a campaign ... Budget passed – but see article below June 17, 2011

On Wednesday, June 15th, the last day to meet the state’s constitutionally required mandate to produce a balanced budget, the state legislature passed California’s first ever majority vote budget. A balanced budget has eluded ... Budget vetoed – if you blinked, you probably missed it June 17, 2011

Less than 24 hours after the state's first "majority vote" budget passed the California legislature, vetoed it. In his statement, he claimed it relied on gimmicks and did not address the structural problems in California's ... Bill to consider costs of obsolete equipment June 10, 2011

One of the regulatory reform bills, SB 357 (Bob Dutton, R-Inland Empire), passed its first house last week. It would require departments to include in their cost estimates of regulations the cost to the state in lost revenue as a result of ... New poll shows mixed support for tax extensions June 10, 2011

Governor Jerry Brown enjoys strong support for his Solomon-like approach to closing the state's budget deficit with a mixture of spending cuts and tax extensions that would require voter approval, a new Public Policy Institute of California (PPIC) ... “Amazon Tax” nexus bills approved in California Assembly June 3, 2011

California and others states are constitutionally prevented from compelling out-of-state retailers to collect the tax unless that retailer has an in-state "physical presence". Assemblymembers Charles Calderon (D-Whittier) and Nancy Skinner ... Local taxing authority legislation breathes new life June 3, 2011

As the state legislature’s “house of origin” deadline (June 3) approached, Senate President Pro Tempore Darrell Steinberg (D-Sacramento) moved to keep alive a bill aimed at providing local governments more power to seek taxes as ... Controller to Legislature: No pay without an on-time budget. June 3, 2011

In a highly unusual move just days before the Governor’s release of his May Revise, Legislative Republicans released their own budget plan last week rejecting the Governor’s proposed tax extensions and public safety realignment ... Legislative Counsel to Governor: “Not so fast my friend….” May 13, 2011

The Legislature's lawyers said in a recent memo that part of Governor Jerry Brown's plan to eliminate redevelopment agencies is unconstitutional because the state cannot reimburse itself with local property taxes.
The Legislative Counsel focused on ... State revenues on the rise May 6, 2011

As of April 22nd, California had collected $40.1 billion in personal income tax revenues for fiscal 2010-11, which is $6.2 billion or 18 percent more than it had collected by the same date last year for fiscal 2009-10. Personal income tax revenues ... Local taxing authority April 29, 2011

Next week the Senate Governance and Finance Committee will hear SB 653 (Darrell Steinberg, Senate President pro Tempore, D-Sacramento) that will grant local governments authorization to impose taxes for local purposes. More specifically, it ... Teachers union & Assembly Speaker push for legislative tax vote April 21, 2011

The leader of one of California's most prominent public employee unions and a top lawmaker are parting ways with Governor Jerry Brown over his plan to ask voters to back extensions of tax increases that expire this year.
The California Teachers ... State budget negotiations come to a halt April 8, 2011

Last week, lawmakers in Sacramento have failed to reach a consensus on how to solve the State’s mounting budget deficit, prompting Governor Jerry Brown to call an end to the current negotiations with minority Republicans. The Governor had ... Sales tax exemption bill passes committee April 1, 2011

Last week, the Senate Governance and Finance Committee passed SB 395 that would exempt the purchase of manufacturing and research equipment from California state sales tax. The bill’s author, Senate Republican Leader Bob Dutton (R-Rancho ... Budget and other related initiatives considered April 1, 2011

As the window for calling a June election to keep higher tax rates in place narrows, other options for placing taxes on the ballot are now circulating. Routes under consideration include a majority vote play by amending an existing initiative ... Tax credit webinar April 1, 2011

Tap into the value of federal and state tax incentives. Romo Incentives Group, a CMTA associate member, is offering a free webinar on Wednesday, April 20th, 10:00 – 10:50 am (Pacific). They will provide an overview of the most common and ... Budget update March 25, 2011

Last week, the California State Legislature approved the main budget bill, SB 69, but indicated that they would hold onto the legislation until the yet-to-be-determined outcome of revenues is addressed. However, the two houses sent Governor ... Assembly/Senate begin budget debate March 18, 2011

The Senate and Assembly postponed their votes on the budget that were tentatively scheduled for this week.
State Controller John Chiang warned them that he may need to resort to "invasive cash conservation options" before July unless they ... Governor sets deadline for ballot initiative March 3, 2011

Governor Jerry Brown says he can reach a budget deal with the Legislature by March 10, a date that is close to his deadline to put tax extensions on the June ballot. Brown said he is not yet certain what the absolute deadline to force a June ... LAO projects lower revenues in out-years Feb. 25, 2011

The Legislative Analyst’s Office announced in its recent revenues forecast report that it generally agrees with Governor Jerry Brown’s assumptions regarding how much revenue California will receive over the next 17 months under his ... Nexus rises again Jan. 28, 2011

Two bills were introduced in the Assembly last week aimed at forcing online retailers to collect sales tax on California purchases.
Assemblywoman Nancy Skinner (D-Berkley) unveiled AB 153 at a press conference. It is similar to legislation she ... Mandatory Single Sales Factor Jan. 28, 2011

The Legislative Analyst Office (LAO) unveiled their analysis of the Governor’s proposed budget last week stating that the proposal, which includes significant reductions in nearly every area of the state budget and a package of revenue ... Majority vote tax increase proposal? Jan. 21, 2011

Will Governor Brown and the democrat majority-led legislature be able to pass a revenue-raising ballot initiative without the assistance of Republicans? While constitutional lawyers across the state debate, state leaders are contemplating two ... Brown releases budget proposal Jan. 14, 2011

Governor Brown released his proposed 2011-12 fiscal year budget on January 10th that aims to close California’s estimated $25.4 billion budget deficit over the next 18 months. The continuing shortfall is a result of a variety of factors ... Governor proposes elimination of key economic programs Jan. 14, 2011

The makings of a legal battle over the Governor’s proposed elimination of redevelopment agencies and enterprise zones may be in the works. State and local governments are arguing that the elimination of these important economic programs ... Budget news Jan. 7, 2011

Governor Jerry Brown will release his budget proposal on Monday, January 10th, that will include significant reductions in state programs and call for tax increases to be put to the voters in a special election.
In addition to the usual cuts and ... Jerry Brown holds budget forum Dec. 10, 2010

California Governor-elect Jerry Brown hosted a gathering of state lawmakers Wednesday (Dec. 8th) and warned that the state's budget shortfall over the next 19 months could be larger than expected—$28.1 billion instead of $25.4 ... Another special session called on the budget Dec. 3, 2010

Despite outgoing Governor Schwarzenegger’s call for a special emergency special session to address the current budget year’s multi-billion deficit, legislative leaders of the majority party in both houses will likely ignore it and ... LAO’s 2011-12 fiscal outlook for California Nov. 18, 2010

Last week, the nonpartisan Legislative Analyst’s Office (LAO) released its economic outlook for the 2011-12 fiscal year, suggesting that the state faces a budget deficit of $25.4 billion heading in to the budget year. Their deficit consists of ... Economy wins – Prop 24 defeated Nov. 5, 2010

While there were few bright spots for California employers from Tuesday’s votes, one significant victory was the successful defeat of Proposition 24. Prop 24, otherwise known as the “Job’s tax” would have repealed ... Yes on prop. 23 – save jobs, stop the energy tax Oct. 25, 2010

We all want to do our part on global warming, but with 2.3 million Californians already unemployed and the state facing a $20 billion budget deficit, protecting jobs and the economy should be our first priority.
Proposition 23 is a common sense ... Budget is over – for now Oct. 8, 2010

Nearly 23 hours after the budget floor sessions began in both houses Thursday, the California State Legislature passed a state spending plan. The legislative action, taken 100 days past the start of the state’s current fiscal year, officially ... “Scarlet Letter” tax reporting bill vetoed Oct. 1, 2010

On the final day for action on hundreds of bills, the Governor vetoed AB 2666 (Nancy Skinner, D-Berkeley), a bill which would have required the largest California employers have their confidential tax information on a public, state-controlled ... More IOUs to be delayed Sept. 10, 2010

California leaders closed the week once again without much progress on the budget, thus marking the 11th week of the current fiscal year the state has operated sans a spending plan. For the past several weeks, the State Controller has been warning ... Budget Update Sept. 3, 2010

The final day of the legislative calendar came and went on August 31st as the clock struck midnight and legislative activity ground to a halt without a budget in place, leaving California’s fiscal plan now 79 days overdue and counting.
As ... Tax incentive programs attacked Aug. 27, 2010

As the legislature nears the end of session, three bills attacking state tax incentive programs passed legislative hurdles on the floor this week that further threaten to erode California’s already damaged business climate.
The Assembly gave ... State IOUs to start in about two weeks Aug. 20, 2010

This week, State Controller John Chiang warned that California will likely begin issuing registered warrants (IOUs) in as little as two weeks due to the state’s ongoing budget impasse.
Chiang blames politics for the cash shortage, and urged ... Controller: revenues down – expenditures up Aug. 13, 2010

Fresh off a major legal victory on the same issue, Governor Arnold Schwarzenegger's administration filed another lawsuit against the State Controller this week in an effort to force him to pay California government workers only the federal minimum ... First day of the fiscal year comes and goes without a budget July 2, 2010

Welcome to the 2010-11 fiscal year. The July 1st fiscal year “deadline” was met this week with similar ambivalence to the June 15th constitutional deadline by our Legislature. The Conference Committee has been silent since last week, and ... Dynamic analyses bill rolls to second house July 2, 2010

One of CMTA’s top priorities this year is regulatory reform, analysis and oversight. SB 1160 (Bob Dutton, R-Inland Empire), as introduced, required a dynamic economic analysis of regulations, tax and budget proposals. It was amended last month ... Senate dems unveil government restructuring proposal June 24, 2010

On June 21st,The Senate Democrats unveiled their “Multi-Year Government Restructuring Plan” aimed at realigning how and where finances and services are provided in the state. Under the proposal, the state would begin to transfer $3-4 ... Budget Update: When it rains it pours June 11, 2010

It seems as if even the Feds have little interest in helping out California during yet another dreary budget season. Last week, Congress stripped out provisions of a state aid bill that would have sent $24 billion, mostly to cover healthcare ... Budget conference committee members named June 4, 2010

In an effort to resolve conflicts between the two houses on budget decisions, legislative leadership has announced the makeup of the Budget Conference Committee. The Committee is expected to begin its work this afternoon and will be comprised ... State may avoid IOUs this summer June 4, 2010

This week, California State Controller John Chiang (D-Los Angeles) released a letter to the Governor and state lawmakers indicating that the state would have enough cash to pay bills through the month of August. The reserves may help the state ... Budget Update: Episode II: The Democrats Strike Back May 28, 2010

This week it was the Democrats turn to unveil their nearly $20 billion deficit- and reserve-closing budget package. In sharp contrast to the Governor’s May Revision, which called for significant cuts, borrowing and no new taxes, Senate ... Governor's 'May Revise' of budget just announced May 14, 2010

At the time of this publication Governor Arnold Schwarzenegger was submitting his “May Revise” state budget proposal, which forecasts the state of California’s finances and proposes new strategies to balance the budget.
Despite ... Join the Stop Hidden Taxes Coalition May 7, 2010

As is typical this time of year, there are a myriad of bills racing through the legislative process to beat the deadline to pass their first policy committee. And once again, legislation aimed at Tax Expenditure Programs maintains a pervasive, ... Tax conformity bill heads to Governor April 9, 2010

After a long, arduous five-year journey, California finds itself now on the precipice of achieving modified conformity between the state and federal tax codes. Both the Senate and Assembly passed SB 401 (Lois Wolk, D-Davis) today, April 8th. It now ... Targeted tax/fee fails first attempt in Assembly Health Committee April 2, 2010

Last week, the Assembly Health Committee considered AB 1694, a bill authored by San Jose Assemblyman Jim Beall (D) which would impose a 5-cent fee on alcoholic beverages to help fund the creation of an Alcohol Related Services Program.
After a ... Mid-term deal reached on state budget March 26, 2010

California’s mid-year budget drama finally wrapped up on Monday, as the Legislature and Governor reached a deal that allowed for the passage of a controversial gas tax swap in exchange for two “jobs” tax credit bills aimed at ... California rated worst state on tax administration March 12, 2010

According to the Council on State Taxation’s recently released report, California has the nation’s worst state tax administration practices. California scored a D-minus, the lowest grade of any other state, based on an eight criterion ... Mid-term budget proposes gas tax swap March 5, 2010

The California State Senate and Assembly were back in action this week to consider the final piece of the mid-term budget proposals aimed at closing nearly a quarter of California’s $20 billion deficit. The cornerstone of the proposal sent to ... Federal 'conformity' bill moves out of Assembly committee Feb. 26, 2010

On Wednesday, February 24th, the Assembly Revenue & Taxation Committee considered and passed out on a party-line vote the federal omnibus tax conformity bill. SBx8 32 (Lois Wolk, D-Stockton). The aim of this 108-page bill is to bring ... Mandatory single sales factor Feb. 19, 2010

AB 1935 (Kevin de Leon, D-Los Angeles) would require the singles sales apportionment factor scheduled to be allowed for corporate filers in 2011 to be mandatory for all qualifying taxpayers.
In its current form, the single sales factor was ... Single sales factor repeal initiative moving forward Feb. 5, 2010

The California Teachers Association (CTA) has officially authorized the formation of a committee and will begin signature gathering to qualify their “corporate loophole” measure. The title and summary have already been approved by the ... Governor's 2010-11 Budget Proposal Jan. 8, 2010

On November 18th, California’s non-partisan Legislative Analyst Mac Taylor released his office’s report detailing a sizeable $21 billion state budget shortfall over the next year and a half. “California’s Fiscal ... Gov’s finance director resigns Nov. 6, 2009

This past Monday, November 1st, Governor Schwarzenegger’s Director of Finance Mike Genest announced his resignation.
Genest’s four years as director marks the second-longest tenure in that role since Ronald Reagan was Governor of the ... More taxes proposed on oil industry Oct. 30, 2009

This week Assemblyman Pedro Nava (D-Santa Barbara) introduced legislation (AB 1 in the Sixth Extraordinary Session) that would place a 10 percent gross value tax on all oil producers in California.
Under the measure, the tax is strictly ... New initiative introduced to repeal economic stimulus reforms Oct. 30, 2009

An initiative filed on October 16, 2009, if passed by voters, would repeal the elective single sales factor provisions enacted in SBx3 15 (Ron Calderon, D-Montebello)and would repeal both the Net Operating Loss (NOL) carryback and the tax credit ... General fund lowest on record Oct. 8, 2009

This week, the Legislative Analyst Office (LAO) released a summary and assessment of the 2009-2010 state spending plan and announced the official 2008-09 revenue numbers. Because the Legislature did not reduce 2008 09 spending as much as the decline ... Tax commission releases final report Oct. 2, 2009

The California Commission on the 21st Century Economy (Tax Commission) released their final recommendations to the Governor and legislature on September 29th at a press conference held with the Governor. Joined by Commission Chairman Parsky and ... California conformity with federal tax has a flaw Sept. 10, 2009

AB 1580 (Charles Calderon, D-Whittier) makes various date and tax law changes in the California Tax Code to conform (with exceptions and modifications) to the federal Internal Revenue Code.
The conformity bill, at 113 pages, generally must have ... Bill would automatically sunset new tax credits Sept. 4, 2009

While the mad dash to the finish line in the state legislature continues throughout next week, one bill currently up for consideration is ACA 6 (Charles Calderon, D-Whittier) which if passed, could further devastate California’s business ... Special session to address Tax Commission findings Aug. 6, 2009

Last week, the Governor announced that he would be calling a special "extraordinary" session of the legislature in order to address the findings and recommendations of the Commission on the 21st Century Economy (Tax Commission). ... Jerome Horton Appointed to BOE July 17, 2009

Governor Arnold Schwarzenegger this week appointed former Assemblyman Jerome Horton to the state Board of Equalization, filling the seat vacated by Dr. Judy Chu, who was sworn in to the United States Congress earlier Thursday.The Board of ... Labor backed ballot initiative threatens economic reforms July 10, 2009

On July 8th, labor-backed interests filed a corporate tax initiative proposal with the Attorney General’s office for official title and summary. Specifically, the measure would repeal the elective single sales factor provision passed in the ... State to issue IOUs July 2, 2009

On May 4, the Obama Administration unveiled its proposals for raising approximately $210 billion over 10 years by curbing what it characterizes as corporate "loopholes" that allow companies investing overseas to gain an unfair advantage ... Enterprise zone bill threatened California economic recovery May 1, 2009

On Wednesday, April 29, 2009, the Assembly Jobs, Economic Development and the Economy Committee considered AB 1139 (John Perez, D-Cathedral City) that would have gutted the California Enterprise Zone (EZ) program by creating new conditions and ... Ballot measures success uncertain May 1, 2009

This week, the Senate Revenue and Taxation Committee passed SB 401, a measure authored by the Committee Chair, Senator Lois Wolk (D-Linden), that would expand the definition of transactions that are subject to the punitive interest penalty of ... California Commission on the 21st Economy: Prop 13 and Split Roll April 17, 2009

With over 20 legislative co-authors and nearly 40 major corporations, business organizations, private trade labor unions and others signed on in support, CMTA has officially introduced its sponsor bills, AB 829 (Anna Marie Caballero, D-Salinas) and ... Packaging taxes March 20, 2009

A number of bills introduced this session purport to reduce litter and the amount of material going to landfill. If passed, they will result in cost increases for a plethora of products being sold in the State.AB 68 (Julia Brownley, D-Santa Monica) ... Tax commission seeks extension March 20, 2009

It appears as if California taxpayers are not the only one’s who would rather not meet a April 15 deadline this year. During last week’s meeting of the California Commission on the 21st Century Economy, the commissioners decided ... Budget passes! Feb. 20, 2009

As the California legislature struggled with closing the budget, President Barack Obama signed the American Recovery and Reinvestment Act. The federal economic stimulus package could result in billions of additional dollars to ... California state budget update Feb. 13, 2009

The Big 5 budget negotiations came to a close this week and emerged with a tentative deal to close the state’s estimated $42 billion dollar deficit. Specific details of the proposal continue to trickle out of the Capitol as leadership ... Tax Commission’s second hearing to be held Thursday Feb. 11, 2009

One of the most egregious components of the California State Budget passed last September (2008) is a tax penalty that created a first-in-the-nation strict liability – a 20 percent penalty on corporations that understate their tax liability. ... Creating jobs in California – R&D credit Jan. 23, 2009

As part of the organization’s legislative tax package aimed towards the retention and growth of jobs in 2009, CMTA will be co-sponsoring a bill that, if successful, will conform the Research and Development (R&D) tax credit rate to that of ... Governor’s tax commission set to begin work Jan. 16, 2009

The first meeting of the 12-member Commission on the 21st Century Economy has been set for January 22, 2009 at the University of California, San Diego. The meeting agenda for this first of four public hearings geared towards revolutionizing ... Another special session for California’s budget woes Dec. 5, 2008

The 2009-2010 legislative session is off and running. Facing an estimated $28 billion revenue shortfall over the next 20 months, California legislators had little time to enjoy their recent election success as they face California’s depressed ... Economic Recovery Task Force Dec. 5, 2008

On the second day of the new legislative session Senate President pro Tempore Darrell Steinberg (D-Sacramento) and Assembly Speaker Karen Bass (D-Los Angeles) announced a cornerstone of their strategy to turn California’s economy around ... New policies and investments needed for California’s economy Nov. 21, 2008

California faces a significant and devastating revenue problem in this reeling economy. The Legislature's nonpartisan fiscal analyst Mac Taylor said last week the state is facing a $27.8 billion shortfall over the next 19 months. With state revenues ... Republicans pledge to make jobs their top priority Nov. 14, 2008

Senate and Assembly Republican leaders say they are united in putting Californians back to work. As the California Legislature grapples with the current budget deficit and the overall economic crisis of the State, talks are underway to develop ... Economic stimulus proposed in Special Session budget Nov. 7, 2008

In October California suffered a staggering decline in state tax revenues, partly the result of a 50 percent drop-off in capital gains tax receipts. This loss joins the chronic structural deficit and gloomy economic forecasts to create a projected ... Another special session to address state’s worsening finances Oct. 31, 2008

The Governor announced this week that he will call the Legislature to a Special Session to address the state’s fast growing deficit. Estimates of the shortfall for this year has grown from $3 billion to $10 billion or more as the state ... New legislative analyst – Mac Taylor Oct. 22, 2008

This week, state legislators named a 30year veteran of the Legislative Analysts Office (LAO) to be the Capitol’s new chief legislative analyst.Mac Taylor was selected by the Joint Legislative Budget Committee to succeed the longtime office ... California budget – $5.8 billion more in business taxes in '09 Oct. 16, 2008

In light of recent developments indicating that the state’s budgetary challenges are continuing and another special session may be necessary, a large coalition of business community leaders believe it is important for decision-makers to have ... The give and take (and take and take) of California tax law Sept. 26, 2008

With California’s long-overdue budget finally enacted into law, we now have the opportunity to take a step back and evaluate the carnage to the business climate left in its wake. One of the most significant provisions within the budget ... Single-payer health care proposal awaits verdict once again Sept. 12, 2008

As Governor Arnold Schwarzenegger and the legislature continue to have a stand off on the budget, the fate of hundreds of bills remains unknown. Among them is SB 840 (Sheila Kuehl, D-Santa Monica) which would establish a government-run, ... The tax man cometh…again… Sept. 12, 2008

Legislation has recently been introduced in California’s ongoing special fiscal emergency legislative session that will likely increase the cost of doing business in the state. ABx3 30 (Charles Calderon, D-Whittier) would immediately ... Another business burden in the name of federal conformity Aug. 8, 2008

The California State Senate will soon consider AB 1848 (Ma), which would require California businesses to withhold 7% of any payments made to independent contractors. These payments would have to be remitted to the Franchise Tax Board or the ... Invest in California? No thanks! July 18, 2008

As part of the legislature’s tax increase proposal to eliminate California’s $15.2 billion shortfall, the democrat led budget plan calls for a suspension of the Net Operating Loss (NOL) deduction. A NOL occurs when certain ... (More) dismal news for the State July 18, 2008

The Budget Conference Committee finished reconciling differences between versions of the 2008-09 state fiscal plan drafted by the Assembly and Senate on Tuesday evening, July 9th, on a sharply partisan vote. Among the tax increase proposals ... Burdensome income tax withholding bill passes Assembly May 30, 2008

For several years, CMTA has been advocating for fair and stable tax treatment for manufacturers doing business in California, pressing the state to allow qualified taxpayers an exemption from the state portion (5 cents per dollar) of the sales tax ... New talk about service taxes May 2, 2008

As discussions surrounding California's current budget situation become more and more dismal, talks about new service taxes have resurfaced. Specific services such as movie admissions and health club memberships were mentioned in a letter that ... Tax credit elimination introduced in the Senate April 18, 2008

Legislation has recently been introduced in the Senate that will likely increase the cost of doing business in the state. SB 1484 (Elaine Alquist, D-Santa Clara) would immediately eliminate credits and deductions currently allowed to taxpayers ... Internet tax April 4, 2008

On April 14th the Assembly Revenue and Taxation Committee will hear AB 1956 (Charles Calderon, D-Whittier) which imposes an expansive, unprecedented new internet tax on Californian’s who purchase digital property. Passage of this ... Join the "Stop Hidden Taxes" coalition March 28, 2008

During the last budget crisis CMTA and CalTAX formed a coalition to fight the imposition of new taxes on businesses disguised as "fees" to fill the budget gap. Under California law as laid out by the Supreme Court in the "Sinclair ... Bill seeks to impose tax on digital property Feb. 22, 2008

The three-member Franchise Tax Board approved a regulatory proposal intended to ease compliance and provide additional clarity for taxpayers.The issue came to a head when the California Supreme Court ruled in the Microsoft and General Motors cases ... FTB Advisory Board – CMTA company representative needed Nov. 2, 2007

The Advisory Board to the Franchise Tax Board is looking to CMTA members to fill an open position. The purpose of the Advisory Board is to provide the Executive Officer with their perspective on the administration of California income tax ... Over-reach by FTB vetoed Oct. 19, 2007

The biggest news on the legislative tax front for many CMTA member companies is the Governor’s veto of AB 1618 (Mike Feuer, D-Los Angeles) which would have repealed the Corporate Interest Expense Deduction.Current law allows taxpayers a ... Enactment of tax bill sets terrible precedent Oct. 12, 2007

Governor Arnold Schwarzenegger has signed AB 198 (authored by the Assembly Budget Committee) which emerged in the final hours of this legislative year as a "gut and amend" measure to limit the rights of taxpayers in pending and future litigation ... 11th hour attack on taxpayer rights Sept. 21, 2007

During the final hours of this legislative year, AB 198 (Committee on Budget) was gutted and amended to limit the rights of taxpayers in pending and future litigation over the constitutionality of the state's fees on Limited Liability Corporations ... Will "pre-texting" bill restrict legitimate investigations? Aug. 24, 2007

SB 328 (Ellen Corbett, D-San Leandro) attempts to address concerns regarding identity theft by imposing restrictions on the notion of "pre-texting." Pre-texting is the act of creating and using an invented scenario (the pretext) to persuade a target ... The economic stimulus package & the state budget Aug. 10, 2007

On July 20th, the state Assembly approved the overall state budget and a series of other agreed upon budget related bills. The bills reflected a compromise among the Assembly leadership, including an "Economic Stimulus Package" that was approved in ... State budget still stuck Aug. 3, 2007

On August 1 the Senate voted on the budget that was previously approved by the Assembly, only to fall short by a single vote. Senator Maldonado (R-Santa Maria ) broke ranks with his caucus and provided one of the two votes needed to pass the budget. ... Major tax reform initiative submitted to AG July 20, 2007

A new tax-related initiative was filed on July 16th with the State Attorney General for its title and summary. Proponents refer to it as the "California Flat Tax". In brief, it will repeal the personal income tax, withholding and information ... Movie industry tax credit arguments are same for manufacturers July 13, 2007

While not much passed out of the Assembly Revenue and Taxation Committee’s suspense file on May 21st, some tax-related measures also made it through the Assembly Appropriations Committee:
• AB 493 (Ira Ruskin, D-Redwood City) ... Assembly Rev & Tax Committee Holds "Suspense" Hearing May 25, 2007

This week, the Assembly Revenue and Taxation Committee held its customary "suspense" hearing for first house bills. The suspense file is where tax incentive or tax increase bills are generally sent after each measure has a hearing. This year very ... Hearing of CMTA’s sales tax exemption May 11, 2007

This week, the Assembly Revenue and Taxation Committee heard testimony on the CMTA-sponsored bill, AB 1152 (Roger Niello, R-Sacramento), which proposes a 5-cent sales tax exemption on the purchases of manufacturing equipment.
According to the ... CMTA-sponsored tax incentive bill set for hearing April 20, 2007

On April 30, the Assembly Revenue & Taxation committee will consider the CMTA-sponsored sales tax exemption proposal, AB 1152 (Niello R-Sacramento). Specifically, the proposal would provide a 5-cent sales tax exemption on purchases of ... Research and Development Tax Credit Workshop April 5, 2007

California currently enjoys a 15 percent Research and Development (R&D) tax credit. New efforts in the state legislature would improve this credit even further by increasing it to 20 percent (AB 751, Ted Lieu, D-El Segundo) and applying a ... R&D credit enhancement efforts at both state and federal level March 9, 2007

Research and Development (R&D) tax incentives are getting renewed attention and support both in Congress and in the California state legislature. With the federal government making a number of positive changes to the R&D credit in 2006, ... CMTA sponsors tax incentive bills March 2, 2007

CMTA continues to strongly advocate for competitive tax policy for manufacturing and research and development (R&D) investments within California. This session, CMTA is also sponsoring two pieces of legislation:
AB 1152 (Roger Niello, ... Attempt to repeal capital investment incentive program Feb. 23, 2007

In 1997, the Legislature created the Capital Investment Incentive Program in an effort to stimulate capital-intensive growth at the regional level. A new bill, (SB 360, Gloria Negrete McLeod, D-San Bernardino), would end the program.Under the ... Tax bills focus on healthcare Feb. 16, 2007

Both houses of the legislature are holding their first hearings on the Governor's healthcare proposal. An increasing number of tax bills are focusing on healthcare as well, with specific attention to Health Savings Accounts (HSAs).
HSAs were created ... New board of equalization chair Feb. 1, 2007

The Board of Equalization (BOE) voted unanimously to name Member Betty Yee (D-District 1) as its Chair.
In 2004, Yee was appointed as "acting member" as a result of former Board Member Carole Migden being elected to the State Senate. In November ... Tax issues so far Jan. 19, 2007

With the bill introduction deadline still over a month away (February 23rd), the flow of introduced bills can be described as a trickle, at best. So far, the most notable proposed pieces of tax legislation range from an elimination of the income ... BOE action reignites how alcohol should be taxed Dec. 15, 2006

The Board of Equalization (BOE) voted three to two to take the initial step towards increasing the tax on a specific segment of the alcoholic beverage market. The products at issue are those often sweeter drinks marketed as "flavored malt beverages" ... New Chairs announced for Revenue & Taxation Committees Dec. 8, 2006

Leadership from both houses of the Legislature announced changes in the top posts of the Revenue and Taxation Committees. On the Senate side, Speaker pro Tempore Don Perata (D-Oakland) appointed former Assemblymember, and now Senator, Jenny Oropeza ... Tax credits: Supreme Court decision invites legislative solution Nov. 2, 2006

On August 17th the California Supreme Court ruled in favor of the California Franchise Tax Board (FTB) with regard to the availability of research and development tax credits. Specifically, the court held that the research and development credit can ... Legislative push next year on clean combustion technologies Nov. 2, 2006

When Governor Arnold Schwarzenegger signed into law a bill that removes fossil fuel combustion technologies from the Self-Generation Incentive program (SGIP) – a measure strongly opposed by CMTA and other business groups – he noted that ... No on 87 - the $4 billion oil tax increase Oct. 13, 2006

No on 87- the $4 billion oil tax increase. There's no question we need to advance energy alternatives, but Proposition 87 is not the way to get there.
It would increase California oil taxes by $4 billion and create a new state bureaucracy of 50 ... Governor signs pro-taxpayer bill Sept. 29, 2006

The Governor signed AB 2182 (Gene Mullin, D-S. San Francisco), a bill that should lead to the more accurate taxation of non-production computers, semiconductor manufacturing equipment, and biopharmaceutical industry equipment and fixtures. ... Container tax bill vetoed Sept. 22, 2006

In 2005, Senator Alan Lowenthal (D-Long Beach) introduced SB 760 to impose a $60 tax on every container ($30 for every twenty-yard-equivalent unit, with most units being forty yards) that passed in or out of the Long Beach and Los Angeles ... End of session corporate counsel & tax round-up Sept. 1, 2006

On August 21st, the Assembly approved AB 675 (Johan Klehs, D-San Leandro) to require corporations in California with assets over $10 million to file with their tax returns a reconciliation between their financial statement's reported income and ... Hyper-Weighted Sales Factor Bill Considered Aug. 11, 2006

The Senate Revenue & Taxation Committee held a lengthy hearing on AB 1037 (Dario Frommer D-Glendale), which seeks to relieve the current taxation penalty whenever a company adds a job or facility within California. Currently, California uses an ... Corporate tax rate increase on November 7th ballot Aug. 4, 2006

In an effort to create a publicly financed campaign system in California at a cost of over $200 million a year, the California Nurses Association and the Foundation for Consumer and Taxpayer Rights (trial lawyers) are sponsoring Proposition 89, the ... Mid-session tax bills update June 30, 2006

In the race to meet the second house policy committee deadline this week, a number of key developments occurred on tax bills of concern to CMTA members. AB 675 (Johan Klehs, D-San Leandro) was approved by the Senate Revenue and Taxation Committee ... Property tax valuation study bill moving swiftly June 16, 2006

The Senate Revenue and Taxation Committee approved AB 2182 (Gene
Mullin, D-So. San Francisco) which is sponsored by the Board of
Equalization (BOE) and could provide more updated and accurate taxation
of certain equipment for the semi-conductor, ... CMTA sends governor support letter for a sales tax exemption June 15, 2006

On June 9, CMTA sent a letter to Governor Arnold Schwarzenegger urging
him to include a sales tax exemption on the purchase of manufacturing
equipment as a part of the 2006-2007 budget. California is one of
only three states that tax ... Tax increase bills still alive June 2, 2006

With the 2006 primary elections just around the corner and legislators
eager to return to their districts, both houses of the legislature
worked swiftly through hundreds of bills and concluded their work long
before the "house of origin" ... Tax & corporate counsel appropriations update May 26, 2006

With the impending "House of Origin" deadline on June 2, the Senate and
Assembly Appropriations Committees met to swiftly dispense with
hundreds of bills that have a fiscal impact and, as a result, were
being held on the committee's "suspense file". ... CMTA sales tax exemption bill advances May 19, 2006

On May 15, the Assembly Revenue and Taxation Committee approved AB 2218
(Alberto Torrico, D-Newark) which is the CMTA-sponsored legislation to
establish a state-only 10-year sales tax exemption on manufacturing,
high tech, bio-tech and other ... CMTA sales tax exemption bill gets first hearing May 5, 2006

CMTA is sponsoring AB 2218 (Alberto Torrico, D-Newark) for a 10-year state sales tax exemption on purchases of equipment used in the manufacturing, high tech, biotech, and nanotech industries. The bill had its first policy hearing this week in ... Renewed effort for tax agency consolidation April 14, 2006

Following a long line of proposals over the years and a previous
recommendation from Governor Schwarzenegger's California Performance
Review, proponents continue to push for tax agency consolidation of the
Board of Equalization (BOE), the Franchise ... New tax bills: The good, the bad, & the ugly March 3, 2006

Last week marked the deadline for introducing new legislation for this
session. The good bills regarding taxes include AB 2016 (Ray
Haynes, R-Murrieta) that combines the Franchise Tax Board and the tax
responsibilities of the Employment ... New manufacturing sales tax exemption bills introduced Feb. 24, 2006

In 2005, Assemblymember Torrico (D - Newark) carried the CMTA sponsored
legislation (AB 1580) to provide manufacturers with a 5-cent sales tax
exemption on manufacturing equipment. AB 1580 died this year
because it was held in the Assembly ... New pro-taxpayer bills introduced Feb. 17, 2006

SB 17 (Martha Escutia, D-Whittier) has long been the legislative
vehicle aimed at dramatically increasing corporate property taxes.
Although SB 17 has undergone a number of changes, Senator Escutia has
been quite clear in her desire to have ... "Windfall" profits tax bill also dies Feb. 3, 2006

AB 673 (Johan Klehs, D-San Leandro) proposed a 2.5 percent windfall
profits penalty assessment on petroleum producers and refiners. In this
bill, a windfall was considered any profit in excess of the average
profit for the previous five years. On ... Split roll property tax bill has a new twist Jan. 27, 2006

In an effort to get SB 17 (Martha Escutia, D-Whittier) out of the
Senate and into the Assembly prior to the January 31st deadline and
with only a simple majority vote, Senator Escutia has employed the "gut
and amend" tactic by removing all ... Windfall profits tax bill advances - again Jan. 20, 2006

As referenced in the previous Legislative Weekly, AB 673 (Johan Klehs,
D-San Leandro) proposes a 2.5 percent windfall profits penalty
assessment on petroleum producers and refiners. In this bill, a
windfall is considered any profit in excess of the ... Windfall profits tax bill advances Jan. 13, 2006

This week the State Board of Equalization (BOE) considered a proposal
(Rule 474) by board member Claude Parrish (R-Rancho Palos Verdes) and
the Assessor community to treat petroleum refineries very differently
from other manufacturing and "heavily ... "Effectiveness" of tax incentives to be scrutinized again in 2006 Dec. 8, 2005

With the state's long-term budget projections remaining weak, the
issues of accountability and effectiveness will dominate discussions on
existing and new tax incentive programs.
Over the last several years – whether the focus was extending ... San Francisco Compromises on Bag Tax Nov. 10, 2005

Earlier this week, the State Board of Equalization (BOE) decided
Costco's franchise tax appeal with regard to application of the
Manufacturers Investment Credit (MIC), a now expired statute in
California.
The issue before the BOE was whether or not ... CMTA Tax and Budget Symposium Oct. 21, 2005

SB 399 (Martha Escutia, D-Whittier) provides the wrong solution to a
very legitimate problem in California. The State has a long-standing
history of failing to fully fund the Medi-Cal program and numerous
county hospitals are struggling ... County Assessors Seek to Tax Aircraft Software July 29, 2005

AB 964 (Horton), a bill that is largely focused on ensuring that
aircraft are valued uniformly throughout the state by avoiding
duplicative taxation efforts, has another little noticed provision that
seeks to specifically capture embedded, or ... BOE Issue – Taxability of Emission Reduction Credits July 22, 2005

The Board of Equalization’s (BOE) Property Tax Committee began the
"interested parties" process on July 12 to determine the taxability of
emission reduction credits (ERCs), with specific attention on
state-assessed electric ... Pay-Back from Net Operating Loss Budget Deal July 15, 2005

Part of the 2002-2003 legislative budget agreement was a two-year
suspension on the carry forward of net operating losses (NOLs)
provisions in the California tax code.
These tax provisions allowed companies doing business in California,
that ... CMTA & Others Warns of Hidden Taxes in Budget & Bills June 3, 2005

On June 1st, CMTA President Jack Stewart joined Larry McCarthy, President of the California Taxpayers’ Association and Allan Zaremberg, President of the California Chamber of Commerce in a press conference to announce the "Stop Hidden ... Bills to Increase Corporate Taxes on Floors of Both Houses May 27, 2005

A number of onerous tax bills have moved from the Senate and Assembly Appropriations committees to their respective houses for consideration.
The bills were approved on strict party-line votes as democrats characterize the majority of the bills as ... CMTA-sponsored sales tax exemption bill to be heard May 16th May 13, 2005

On Monday May 16th, the Assembly Revenue and Tax Committee will hear AB 1580 (Alberto Torrico, D-Newark), the CMTA-sponsored measure that would provide a 5 cent sales tax exemption on the purchases of manufacturing, research and development assets, ... Sales Tax for Services April 22, 2005

Assemblymember Joe Coto (D-San Jose) has deleted the prior contents
of his AB 9 and inserted new language aimed at establishing a sales tax
on various services in California. The new revenue would be earmarked
for the Education Finance Account, ... CMTA pushes sales tax exemption to replace now expired MIC April 15, 2005

In January 2004, California’s Manufacturing Investment Credit (MIC) expired due to a finding by the Employment Development Department that the total manufacturing jobs had not grown by 100,000 jobs during the MIC’s existence.
In 1993 ... State Tax “Amnesty” Program Closes Today (April 1) April 1, 2005

California’s controversial tax amnesty program (that resulted from last year’s state budget) will close today, April 1st. The amnesty program is for both the State Board of Equalization (BOE) (sales and use tax only) and the ... Last Chance for “Sinclair” Fix? March 25, 2005

CMTA is encouraging businesses to contribute to the "Close the Loophole
on Hidden Taxes" campaign to pass a measure to define "tax" and "fee"
in order to prevent the Legislature from passing, on a majority vote,
taxes labeled as fees, as allowed by ... Senator Repeats Proposal to Curb Use of Tax Credits March 18, 2005

Senator Martha Escutia (D-Whittier) has introduced SB 27 to prohibit corporations from claiming tax credits for a two-year period to the extent they would reduce "net tax" by more than 50%. (Unused credits could presumably be subject to ... Will Budget Reform Include a Fix for Sinclair? March 11, 2005

Various measures to prevent future state budget deficits are competing to be included in the Governor’s reform package. The package of initiatives could appear on a special election ballot later this year. A top contender to be included is a ... Assembly Hearing on “Repeal of Major Tax Relief” March 11, 2005

At the behest of Chairman Johan Klehs (D- San Leandro), the Assembly Revenue and Taxation committee held an informational hearing to explore the "repeal of major tax relief granted through the general fund 1997 through 2004."
The hearing ... CMTA Sales Tax Exemption Bill Introduced Feb. 25, 2005

Assemblymember Alberto Torrico (D-Fremont) has introduced AB 1580 which will serve as CMTA’s vehicle to propose a sales tax exemption (STE) on the purchases of new manufacturing and telecommunications equipment. Qualified taxpayers would be ... CMTA & Coalition Ask Gov to Prevent Taxes Disguised as Fees Feb. 18, 2005

On February 17th, a large coalition signed and delivered a letter to Governor Schwarzenegger asking him to make illegal the practice of imposing taxes disguised as fees and to ensure a proper two-thirds vote on these measures.
This need for reform ... Assembly Rev & Tax Chair Releases “Revenue Options” Feb. 11, 2005

The Citizens for Tax Justice and the Institute on Taxation and Economic Policy recently released a report disparaging the use of tax credits and economic development incentives, noting that many companies significantly reduce or completely eliminate ... CMTA Tax, Budget, & Fiscal Reform Symposium Highlights Jan. 28, 2005

This year marks the 3rd year of CMTA’s conference on state tax, budget, and fiscal reform issues. It attracted CMTA member companies, the newly appointed Director of Finance Tom Campbell, key legislators, economists and business ... New Director of Finance to Address CMTA Members Jan. 14, 2005

The newly appointed Director of the Department of Finance, Tom Campbell, will be the keynote speaker or lunch at the upcoming CMTA Tax, Budget, and Fiscal Reform Symposium on January 25th in Sacramento.
Additionally, the Legislative Analyst, ... Assembly Revenue & Taxation Committee Restructured Jan. 9, 2005

Assembly Speaker Fabian Nunez (D-Los Angeles) has announced new appointments to the Assembly Revenue and Taxation committee. The partisan makeup of this committee remains the same as last year with five democrats and two republicans.
The Chair of ... CMTA Tax Symposium: Panel to Focus on Long Term Structural Reform Dec. 17, 2004

The January 25th CMTA Tax Symposium will again fall on the heels of the Governor’s January budget release. This sets the stage for months of budget deliberations. The symposium is also timed to coincide with the Legislative Analyst’s ... Voters Oppose Establishing State Tax Court Dec. 10, 2004

During the last session, AB 2472 (Lois Wolk, D-Davis) and SB 1424 (John Burton, D-San Francisco) proposed a California Tax Court. It would have been composed of a five-member administrative body intended to replace both the Board of Equalization and ... New Chair of Senate Revenue & Taxation Committee Dec. 3, 2004

Senate President pro Tem-elect Don Perata (D-Oakland) has chosen Senator Mike Machado (D-Linden) to serve as chair of the Senate Revenue & Taxation Committee.
Senator Machado was elected to the Senate in 2000 after serving three terms in the ... CMTA Tax Policy Symposium in Sacramento January 25th Dec. 3, 2004

On January 25, 2005 CMTA is hosting its 3rd annual Tax Policy Symposium in Sacramento. Each year CMTA hosts a conference to explore the fundamental, long term reforms the state should adopt in order to improve the function of government and support ... Board of Equalization Seat Up for Grabs Nov. 11, 2004

Current Board Member and Chair of the State Board of Equalization (BOE), Carole Migden (D-San Francisco), handily won her quest in the latest election for California State Senate. She will be sworn into office on December 6th, taking the seat ... Gov. Appoints Former State Senator Director of Finance Nov. 4, 2004

Governor Arnold Schwarzenegger today announced the appointment of Tom Campbell as the director of the Department of Finance.
"Tom is a brilliant economist with intricate, first-hand knowledge of public and fiscal policy who shares my commitment to ... CMTA MIC Roundtable in Los Angeles Oct. 22, 2004

CMTA supports the CPR recommendation to provide a 5 percent sales tax credit for sales tax paid in the previous year on manufacturing and telecommunications equipment. Most states believe it is harmful and inefficient policy to impose tax on the ... MIC - CMTA Companies Meet with Revenue & Taxation Committee Chair Sept. 19, 2004

CMTA recently held two Tax Policy Roundtable discussions with member companies and the Chairman of the Assembly Revenue and Taxation committee, Rudy Bermudez (D- Norwalk). The first of the two events was on September 8th and included CMTA Tax ... CPR Recommendations on Tax Policy and Agency Consolidation Aug. 9, 2004

With CMTA's input, the CPR suggests that "(t)he Governor should work with the Legislature to provide a 5 percent sales tax credit beginning in 2006 for all sales tax paid in the previous year on manufacturing equipment." With the recent ... CHI Releases 2004 Biomedical Reports July 9, 2004

On June 23, 2004, the California Healthcare Institute (CHI) released two reports titled California's Biomedical Industry and Biomedical Manufacturing in California.
According to the general report, California's biomedical industry employs more ... Corporate Tax Return Disclosure Bill Amended June 11, 2004

Coinciding with the first day of the Legislature's Budget Conference Committee deliberations, CMTA led a coalition of member companies on a lobby day at the Capitol to present the case that this year's budget should include a tax incentive for ... Assessors' Revenue Grab Passes Assembly on 2nd Attempt May 28, 2004

SB 1876 (Dede Alpert, D-San Diego) originally proposed to repeal the water’s edge election, but that provision will be amended out of the bill shortly. The bill now would repeal the double-weighting of sales when apportioning corporate income ... Punitive Record Retention Mandate Bill Fails April 23, 2004

This week in the Assembly Revenue and Taxation Committee AB 1850 (Rebecca Cohn, D-Saratoga) failed passage. CMTA opposed this measure which would have required any person owning, claiming, possessing, or controlling property that is used in a trade ... Newly-Amended Bill Attacks Existing R&D Tax Credit April 2, 2004

Senator Martha Escutia (D-Whittier) recently amended her bill, SB 1501, to reduce the amount and effectiveness of the current Research & Development tax credit. SB 1501 now proposes to decrease the R&D credit from the current 15 percent to 10 ... Bills to Support in Assembly Revenue & Taxation March 22, 2004

The Assembly Revenue and Taxation Committee with its new Chair, Assemblymember Rudy Bermudez (D-Norwalk) will hold its first hearing of the year on March 22. While a number of bills are set for this hearing, it appears as if future hearing dates ... Senator Proposes Curb on Use of Tax Credits March 5, 2004

Senator Martha Escutia (D-Whittier) has introduced SB 1354 to prohibit corporations from claiming tax credits this year to the extent they would reduce “net tax” by more than 50%. (Unused credits could presumably be subject to carry-over rules in ... Taxes Feb. 20, 2004

New Assembly Speaker Fabian Nunez (D-Los Angeles) recently surprised many by indicating that higher taxes are not the first option for the Assembly Democratic leadership. “For my folks, this (recall) election was a wake-up call to look at things ... Tax Incentives for Manufacturers Feb. 6, 2004

The bills introduced last year to extend the Manufacturers Investment Tax Credit failed to meet their January deadlines and are dead for the year. However, two bills to give some tax related support to manufacturing have been introduced this ... Fostering Bio-Tech Growth Feb. 6, 2004

The Assembly Select Committee on Biotechnology held an informational hearing this week titled “Jumpstarting California’s Economy by Fostering Biotechnology Growth”. The purpose of the hearing was to discuss the impact of biotechnology on the state’s ... House of Origin Deadline Stops Many Onerous Tax Proposals Jan. 30, 2004

The end of this week marks a legislative deadline requiring all bills to be out of their “house of origin” in order to be considered during the remainder of the 2003-2004 Legislative session. In the tax issues listed below, this deadline and the ... CMTA Tax Symposium Highlights Jan. 23, 2004

This year’s Tax Symposium attracted over 100 registrants, TV and print media, key legislators, the Governor’s fiscal and tax experts, economists and business representatives. The day focused on the tax and fiscal policy choices facing lawmakers, ... Governor Does End Run Around Legislature Dec. 19, 2003

Donna Arduin will be participating in the CMTA Tax Symposium on January 20 just after the release of the 2004-05 budget (see article above).
Governor Arnold Schwarzenegger chose Arduin, a Republican, to direct his Department of Finance (DOF) ... Budget Bail-out Bond & Spending Limits Pending Dec. 12, 2003

Governor Arnold Schwarzenegger (R) and legislators resumed discussions on possible bond and spending limitation measures to go on the March 2, 2004 ballot. A deadline of Friday, December 5 originally set by Secretary of State Kevin Shelley (D) was ... Schwarzenegger May Seek Approval for Initiatives Nov. 14, 2003

With Governor-elect Schwarzenegger set to take office this Monday, November 17th, many are expecting quick action on a number of fronts. Schwarzenegger may seek the legislature’s approval of two initiative proposals for the upcoming March 2004 ... Massive Corporate Property Tax Hike Sought by Teacher's Union Oct. 31, 2003

With California manufacturers struggling to cope with skyrocketing workers' compensation costs, enormous energy bills, and an impending six percent tax increase on the purchases of their manufacturing equipment, the threat of a targeted property tax ... Changes to the Franchise Tax Board and Dept. of Finance Oct. 17, 2003

The arrival of Governor-elect Schwarzenegger involves changes for the Franchise Tax Board (FTB). According to the FTB website, "The purpose of the Franchise Tax Board is to collect the proper amount of tax revenue, and operate other programs ... Schwarzenegger Vows to Fight for Taxpayers Oct. 10, 2003

Arnold Schwarzenegger acknowledges that California faces some of the highest costs of doing business in the nation. He appears ready to counter that, or at least avoid any more harm to California's tax climate.
In clearly acknowledging ... Governor’s Recently-Signed Budget Already Being Dismantled Sept. 26, 2003

CMTA is hosting a conference to highlight the impact of tax policy on California’s economy, what should and should not be done to balance the state budget, and why the state must focus on growing tax revenues through economic development. Key ... Tax Issues: Year in Review Sept. 18, 2003

The year began with the state's historic budget deficit overshadowing all other policy issues. While the size of the deficit was a matter of dispute, most in the legislature believed that the deficit was a result of insufficient revenues, rather ... Critical vote on SB 1064 looming Sept. 11, 2003

This week several of the front-runners in the election to recall Governor Gray Davis released their plans to resolve the state's budget crisis.
Lieutenant Governor Cruz Bustamante (D) released one of the most detailed, yet most disturbing plans ... U.S. Congress Moves Closer to Banning Internet Taxes Aug. 12, 2003

From Manufacturing News -- The Internet Tax Moratorium has been permanently extended by the Senate Commerce Committee.
The legislation (S-150) mirrors a similar bill (HR-49) approved by the House Judiciary Committee. Industry has lobbied Congress ... MIC Extension Suffering In Budget Talks July 18, 2003

This week the Senate considered a package of spending reductions proposed by the Senate Republicans to cut $2.7 billion from the Democrats' plan. This GOP plan went down on a party line vote, with 13 Republicans voting for it, one abstaining, and ... Corporate Property Tax Hike Proposal Stalls July 14, 2003

Pay Raises Considered for Legislators
The week began with the citizens committee charged with setting the salaries of the Governor and Legislators deciding unanimously against any pay increases due to the state's dire fiscal outlook.
This ... CMTA Members Meet with Governor Davis on the MIC June 13, 2003

CMTA and other business representatives and trade associations charged into the Capitol on June 12 to meet with more than 25 legislative offices to advocate the importance of the Manufacturers Investment Credit (MIC) and ask for an indefinite ... MIC Advocacy Day June 6, 2003

CMTA continues to lobby the extension of the Manufacturers Investment Credit (MIC). On June 11th, CMTA will partner with a number of state and regional business trade associations and their member companies for an advocacy day of targeted ... Assembly Dems Reject Governor's Budget Proposal June 4, 2003

On May 5, 2003, the Assembly Committee on Revenue & Taxation heard AB 1674, (D-Dutra) which would extend the Manufacturers Investment Taxation Credit indefinitely. More importantly, AB 1674 would repeal both the exemption and credit provisions ... Tobacco Manufacturers Targeted with Sinclair Fees April 4, 2003

SB 676 (Deborah Ortiz, D-Sacramento) will be heard in the Senate Health Committee on April 9th. The bill is an attempt to raise revenues from some manufacturers selling products in California under the broadest authority allowed by Sinclair Paint ... Ballot Initiative To Ease Passage of Tax Increases April 4, 2003

The public employee unions want to reduce the vote threshold required to pass tax increases. The sponsor-named "Budget Accountability Act" was submitted to the Attorney General in hopes of seeing it on the March 2004 ballot.
While the thrust of the ... Senate Committee Approves New Alcohol Tax March 28, 2003

The Senate Health and Human Services Committee approved two bills opposed by CMTA and authored by Senator Gloria Romero (D-Los Angeles). SBx1 5 and SB 108 both impose an additional 5-cent tax per drink from any wholesaler located within the state ... California's Corporate Governance Campaign Continues March 28, 2003

This week the Senate Revenue and Taxation Committee held an informational hearing to discuss tax incentives. The term "tax expenditure" was invented in the late 1960s by Professor Stanley Surrey, then Assistant Secretary of the U.S. Treasury, as a ... Business Properties Targeted for Massive Tax Hikes Feb. 28, 2003

On Wednesday, February 27th, State Senator Martha Escutia (D-Whittier) held a press conference on the steps of the Capitol to draw attention to her Split-Roll property tax proposal. Under the guise of "restructuring our tax system", Escutia's SB 17 ... LAO Analyzes MIC Elimination and Suspension of R&D Tax Credit Feb. 21, 2003

On Wednesday, February 19th, the non-partisan Legislative Analyst, Elizabeth Hill, released her annual analysis of the Governor's proposed 2003-2004 budget.
In terms of revenue raising options, Hill suggested that the legislature consider the ... State's Bond Rating Continues to Fall Feb. 14, 2003

With a variety of academics and economists calling for temporary tax increases and varying advocacy groups calling for spending reductions, California's two top finance officers, Governor Davis and State Treasurer Phil Angelides, went to New York to ... Angelides Proposes Tax Increases on State's Businesses Feb. 14, 2003

State Treasurer Phil Angelides jumped into the budget fray this week and proposed increases in taxes on business as a way to minimize cuts in funding for education. In a letter to the Governor and legislative leaders, Angelides charged that the ... CMTA's Tax and Budget Conference A Success Feb. 8, 2003

The Senate Revenue and Taxation Committee held an informational hearing on Wednesday, January 29th, on the Governor's proposed tax increases -- the first in a series of hearings on various tax issues, including the Manufacturers -- Investment ... The MIC Matters Jan. 17, 2003

In his budget address, Governor Gray Davis declared that extending the manufacturer's investment credit will help ensure an economic recovery and stem the loss of high-wage manufacturing jobs, now 10% of the total industrial workforce in recent ... More Manufacturing Jobs Lost Jan. 17, 2003

The Employment Development Department released California's official December unemployment rate today and, for the 24th consecutive month, the state's manufacturing job base declined.
2,100 manufacturing jobs were lost (seasonally adjusted) in ... Underground Economy Costing State Billions Jan. 17, 2003

According to the Franchise Tax Board, the underground economy in California is costing the state $4 billion a year in lost tax revenue. This at a time when the state is struggling with nearly a $35 billion budget shortfall.
It has also been ... Ackerman Introduces Bill to Continue the MIC Jan. 12, 2003

Governor Gray Davis used his annual state of the state address to
indicate his strong support for ensuring that the manufacturer's
investment credit (MIC) remains in law as legislators scramble to
bridge a historic gap between revenues and ... Governor Supports Manufacturer's Investment Credit Jan. 10, 2003

Governor Gray Davis used his annual state of the state address to
indicate his strong support for ensuring that the manufacturer's
investment credit (MIC) remains in law as legislators scramble to
bridge a historic gap between revenues and ... Dutra tasked with raising revenue Dec. 20, 2002

Assemblymember John Dutra (D-Fremont) has been assigned the “thankless job” of developing proposals for the right mix of painful state tax hikes to blunt the deficit-driven budget cuts that are in order. While other legislators will be assigned to ... Capitol updates archive